Croatia’s economy contracted for a seventh quarter on an annual basis as declines in investment and consumption persisted in the European Union’s newest member.
Gross domestic product shrank a preliminary 0.7 percent from a year earlier between April and June after dropping 1.5 percent in the first three months of the year, the statistics office, based in the capital, Zagreb, said today on its website. Final GDP data will be published on Sept. 10.
“The negative trend in capital investment and exports is going to continue, aggravated by somewhat decreased revenue from tourism this season,” Zdeslav Santic, chief economist at Soc-Gen Splitska Banka d.d., said by phone from Zagreb before the release. The economy may contract 1.2 percent this year before a “modest recovery” in 2014, he said.
The Adriatic nation, which joined the EU in July, has endured an economic contraction of more than 10 percent since 2008, during which time foreign direct investment has plunged 80 percent. GDP will grow 0.7 percent this year, the government predicted in February, trimming a previous 1.8 percent forecast. The economy will contract 1 percent in 2013, according to the European Commission.